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A Vision for a Circular Economy for Plastics in Canada the Benefits of Plastics Without the Waste and How We Get It Right

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A Vision for a Circular Economy for Plastics in Canada the Benefits of Plastics Without the Waste and How We Get It Right REPORT A VISION FOR A CIRCULAR ECONOMY FOR PLASTICS IN CANADA THE BENEFITS OF PLASTICS WITHOUT THE WASTE AND HOW WE GET IT RIGHT FEBRUARY 2019 REPORT 1 Executive Summary .................................................................................... 3 2 Introduction .............................................................................................. 4 3 How do we currently use and waste plastic? ................................................... 5 3.1 What are plastics? ................................................................................ 6 3.2 The current linear approach to plastics .................................................... 6 3.3 Framing the problem ............................................................................ 7 3.4 Opportunity lost and found ................................................................... 7 4 What would a Canadian plastics circular economy look like? ...........................10 4.1 What is a circular economy? .................................................................10 4.2 What would a circular economy for plastics in Canada look like? ................ 11 4.3 Renewable plastics .............................................................................12 4.4 Recirculation of plastics .......................................................................13 4.5 Plastics powered by renewable energy ..................................................14 5 Why don’t we have a circular economy for plastics today? ..............................15 6 What can we do to start the shift to a plastics circular economy? ......................17 6.1 Recirculating plastics through extended producer responsibility (EPR) .......18 6.1.1 Circular economy outcomes for plastics offered by EPR....................................20 6.2 Recycled content performance standards .............................................. 22 6.2.1 Recycled content standards and government procurement..............................24 6.3 Definitions, performance standards and assessment protocols ................. 24 6.3.1 Intergovernmental collaboration towards a circular economy for plastics............25 6.4 Bans and taxes on the sale of plastic products and packaging.....................26 6.4.1 Single-use plastic taxes as an alternative to bans..............................................27 6.5 Bans on the disposal of plastic products and packaging ........................... 29 6.5.1 Disposal levies as a supplement to disposal bans for plastics.............................30 6.6 Pricing the burning of plastics for energy ................................................31 7 Conclusion .......................................................................................32 2 | Report: A Vision for a Circular Economy for Plastics in Canada 1. EXECUTIVE SUMMARY Canada’s current take-make-waste model for Five barriers currently face the evolution of a circular plastics harms the environment and squanders economy for plastics in Canada. economic opportunity. Canada does not have a plastics circular economy because Plastics are ubiquitous. While they bring benefits to society, under current economic and policy conditions, the the use of plastics today is a highly wasteful, linear, take- cheapest way to use plastics is the take-make-waste linear make-waste model that is harmful to the environment, economy. Five barriers to a plastics economy in Canada unsustainable in the long-term, and a missed opportunity include: economic disparities driven by direct production as value is literally thrown away. This current linear economy subsidies for fossil-based plastics; un-priced and for plastics requires energy and generates emissions for unmitigated externalities; poor exchange of information; each production cycle. This would largely be avoided technological barriers; and existing policies and regulations if plastic was otherwise reused or effectively recycled. that block the development of circular economy practices. The opportunity for Canada’s chemical industry to drive innovation and growth in plastics recycling and renewable Circularity will result from market evolution, not plastic chemistries is lost. revolution. It will not happen overnight. A plastics circular economy reduces waste and This evolution involves building new commercial emissions while capturing value. relationships, transforming existing exchanges and relationships, redesigning products and packaging, A plastics circular economy is one that minimizes wasteful reinventing products and packaging systems to be use of plastics, produces plastics from renewable sources, delivered as services, developing technologies, making is powered by renewable energy, reuses and recycles investments and changing operations. It also involves plastics within the economy without leakage to the shifting consumer cultural norms to change patterns in the environment, and, by extension, generates no waste or consumption and use of plastics, increase participation in emissions. circular resource recovery systems, and to prevent plastic pollution. A plastics circular economy in Canada would recirculate materials in an environmentally- and Governments at all levels have a vital role to play in financially-sustainable closed loop. catalyzing a circular economy for plastics. A circular economy is characterized by the closed loop Waste policy falls largely (though not exclusively) within flow of materials. Its systems recirculate materials using the jurisdiction of Canadian provinces and territories. renewable energy, do not deplete resources and can be The federal government and the provinces and territories perpetuated indefinitely without any accumulation of waste should establish a collaborative approach to national in the environment. A plastics circular economy in Canada harmonization of definitions, standards, targets and would have three key characteristics: renewable resins, the measurement protocols. This report recommends three use of renewable energy to power each life-cycle stage, initial policies and three supporting policies that will and the recirculation of hydrocarbon molecules that either catalyze a circular economy for plastics in Canada. displace the demand for raw materials or are consumed as nutrients in living systems without harm. The benefits of plastics without the waste | 3 REPORT 2. INTRODUCTION The current linear economy has given us a plastics Readers should note that, while this report focuses on problem in Canada. The use of plastics today is a highly plastics specifically, the lens through which the plastic wasteful, linear, take-make-waste model that is harmful problem is viewed applies to a great many products, to the environment and misses economic opportunities packaging, materials and processes that are currently as value is literally thrown away. This linear economy for operating with a linear approach but could find systemic plastics requires energy and generates emissions for each solutions in a circular economy. production cycle that would largely be avoided, were plastic otherwise reused or effectively recycled. Circularity will result from market evolution, not revolution. Canadian individuals are increasingly concerned with It will not happen overnight. This evolution will involve plastic waste and environmental impact. With their building new commercial relationships, transforming consumer and citizen power, they are demanding that existing relationships, redesigning products and businesses and governments respond with a more packaging, reinventing products and packaging systems to sustainable approach to plastics. be delivered as services, developing technologies, making investments and changing operations. It will also involve Fortunately, Canada also has a plastics solution. There shifting consumer cultural norms to change patterns in the is the opportunity to move towards a plastics circular use, consumption and recovery of plastics. economy that produces plastics from renewable sources, is powered by renewable energy, reuses and recycles plastics There is a role for everyone to play in the transition to a within the economy without leakage to the environment, circular economy for plastics in Canada. By their nature, and generates no waste or emissions. A plastics circular circular economies involve market collaborations. economy would be a growth economy recirculating Achieving a circular economy will require new interactions plastics in a manner that harnesses their extraordinary between individuals, governments at all levels, and material properties but without waste. businesses to evolve from a linear, wasteful model to one that is circular and regenerative. It would be a waste to If we are going to strive towards a plastics circular economy, miss an opportunity to reduce environmental harm while we need to start by answering two key questions: Why do capturing economic value. we waste plastic? And what can we do to divert plastics away from disposal and back into the productive economy? That is precisely the purpose of A Vision for a Circular It is time to evolve from Economy for Plastics in Canada. This report seeks to answer these critical questions, exploring the un-priced pollution a linear, wasteful model and waste associated with producing, using and disposing of plastics that subsidizes the plastics linear economy. to one that is circular and This report draws on these findings to inform the regenerative. development of a Canadian plastics action plan. It looks at the environmental
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